Government needs K300 billion for electricity supply

The Government needs an estimated K300 billion to supply electricity throughout the country for financial year 2017-2018, U Myint Oo, deputy director general of the Electricity and Energy Ministry’s Department of Electric Power told The Myanmar Times.

But U Myint Oo said that the government will be losing K23 per unit as it is going to supply power at a loss.

The Ministry of Electricity and Energy said the country needs 3100 megawatts of power for fiscal year 2017 – 2018.

In current fiscal year, the government expects a total income of K1.164 trillion from power distribution, while expenditure is expected to reach K1.541 trillion, so that the ministry will have a loss of K376.64 billion.

U Tun Naing, , deputy minister of the Ministry of Electricity and Energy, told Pyithu Hluttaw last month the government lost about K337 billion in electricity transmission in the previous fiscal year.

The ministry has to invest in transmission and distribution costs in addition to production cost, so that the state’s budget which has been planned for expansion of power plant projects, electricity grids and substation projects has been deducted to offset costs, officials said.

Currently, electricity prices for households ranged from K35 to K50 per unit and for industrial users, prices ranged from K75 per to K150 per unit.

State-owned and private power plants generate electricity at a cost of about K91.92 per unit but income from collecting electricity charges averaged K69.26 per unit, therefore about K22.66 has been used from the state’s budget for every unit and a total of about K337 billion were lost in 2016-17 financial year, U Tun Naing said.

The World Bank is helping the government draw up a tariff policy that would develop the country’s electricity sector, reduce losses and set an appropriate rate of electricity prices, he said.

The Ministry of Electricity and Energy has invited suggestions from representatives of Pyithu Hluttaw, regional or state governments and concerned ministries on how to amend electricity prices.

For more details : http://www.mmtimes.com/index.php/business/27023-government-needs-k300-billion-for-electricity-supply.html